Encana selling San Juan assets for US$480 million

The company said it intends to ‘deliver strong growth and generate free cash flow’

Calgary-based Encana Corp. announced on Monday that its wholly-owned subsidiary, Encana Oil & Gas (USA) Inc., has reached an agreement to sell its San Juan assets in New Mexico for US$480 million to Denver-based DJR Energy LLC.

“This transaction is consistent with our strategy and our objective of delivering quality returns to our shareholders. It adds to our financial strength and is aligned with our focus on maximizing the value of our assets and disciplined allocation of capital,” said Doug Suttles, Encana president and CEO, in a news release.

“This is a very exciting year for our company as we deliver strong growth and generate free cash flow, demonstrating the strength and quality of the business we have built.”

The company said the San Juan assets include about 182,000 net acres. In 2017, the assets delivered average production of approximately 5,400 barrels of oil equivalent per day including 3,900 barrels per day of liquids, it added.

Mario Toneguzzi is a veteran Calgary-based journalist who worked for 35 years for the Calgary Herald, including 12 years as a senior business writer.